Beijing on June 22 morning news, two South Korean electric vehicle battery manufacturers, namely LG Chemical and Samsung GDI, failed to get China's battery authentication. This will affect both companies to expand production capacity in China program.

LG and Samsung control of 1/3 share of the global electric vehicle battery market. The two companies said on Tuesday that the recent Chinese electric car battery authentication application was rejected.

The decision means Chinese Ministry of Industry, equipped with LG and Samsung battery electric cars may not be able to get government subsidies. Chinese government recently said it is considering limiting state subsidies for the purchase of electric vehicles, only vehicles equipped with certified battery can be subsidized. This program will be implemented in 2018, the fastest.

At present, the Chinese government subsidies accounted for the highest proportion of electric car prices up to 40%. If you lose subsidy eligibility, then the battery supplier will be difficult to find customers.

In this round of applications, there are 31 Chinese battery manufacturers have applied for battery certification and final approval. LG and Samsung said it was not clear reasons the application was rejected. The companies also said it will resubmit the application later this year.

For equipped with Samsung, LG and other international manufacturers of battery electric buses, China has stopped once the high subsidies. These batteries use a nickel-cobalt-manganese material.

In order to fast-growing electric vehicle battery market share increase, LG and Samsung is concerned about China's demand. Last year, the market share of global demand for Chinese 1/3.

Chinese government plans to hit the road by 2020, 5 million electric cars and buses, in order to tackle air pollution, reduce dependence on imported oil.

LG Chemical and Samsung GDI in Nanjing and Xi'an, the establishment of a battery factory in China to develop the electric vehicle market. LG Chemical production at this plant can meet the 50,000 electric cars per year, while the production plant of Samsung GDI is able to meet the 40,000.

LG is currently available worldwide from about 20 to battery electric car manufacturers, including General Motors, Ford and modern. In China, the company's customers include SAIC and Chery Automobile. Samsung's clients in China include Zhengzhou Yutong and Foton.

South Korea's SK Group, SK Innovation said in April, consider constructing electric vehicle battery plant in China, to expand production capacity in China.

Nomura Securities is expected in 2020, with an average annual growth rate of Chinese electric vehicle market will be close to 50%.